The government of India is planning to first define cryptocurrencies and proposes to categorize virtual currencies based on their use cases, according to an article by ET.
As per the sources of ET, “Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per user case — payments, investment or utility.”
“The government in its draft bill is working towards defining cryptocurrency and its treatment in various use cases, so that it can be treated correctly in the books of accounts plus it should be taxed in the right manner,” a person in the know of ET said.
However, the government is not looking for allowing payments and settlements through virtual currencies or cryptocurrencies.
“Crypto-assets can be either categorised on the basis of the technology they use or they can be defined on their end-use. So, before talking about how the regulations should work, the government has to spell out what it means by cryptocurrencies,” said a person to ET that is aware of the development.
Let’s wait till the final bill passes by the government, till that time stay tuned with Koinalert for the latest news and updates from the crypto world.
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